FORT LEE, N.J. -- During a news conference earlier this week at a gas station in Fort Lee, N.J., U.S. Senators Frank R. Lautenberg (D-N.J.) and Robert Menendez (D-N.J.) laid out steps they believe that President Bush should take to lower gasoline prices for New Jersey drivers.
The two lawmakers were joined by Fort Lee Mayor Jack Alter and Bergen County Executive Dennis McNerney.
In a letter, Lautenberg and Menendez accused the president of ignoring the dramatic rise in gasoline prices and its impact on families in New Jersey [image-nocss] and across the country. "Under your leadership, a gallon of gasoline has risen from $1.16 per gallon to $2.73 since the end of 2001. This enormous price increase is hitting millions of American families and businesses very hard," wrote the lawmakers.
"Mr. President, in your State of the Union address you said keeping America competitive requires affordable energy. As the big oil companies are posting record profits, many families in New Jersey are finding it difficult to balance the costs of filling their tanks with other critical needs of their families. We urge you to address the growing crisis before the summer travel season begins," Lautenberg and Menendez wrote in their letter.
They called on the president to address the issue of rising gasoline prices by taking a series of steps. First, take action against the Organization of Petroleum Exporting Countries (OPEC). This year, Bush refused to make reform of OPEC a condition of Saudi Arabia's accession to the World Trade Organization (WTO) despite the OPEC cartel violating WTO's prohibition on export quotas, they said. Lautenberg and Menendez urged the president to file an official complaint with the WTO against OPEC's illegal actions.
Last year, Lautenberg introduced the OPEC Accountability Act (S.752), which requires the president to initiate consultations with OPEC nations that are also members of WTO to seek their elimination of any action that limits the production or distribution of oil, natural gas or any other petroleum products. If the consultations fail, the legislation requires the U.S. Trade Representative to initiate WTO dispute proceedings.
Click here to view Lautenberg's report on OPEC.
The Federal Trade Commission (FTC) is currently conducting an investigation into possible price gouging by big oil companies. If the FTC concludes there were potentially unfair business practices, including price gouging, the senators said, there are actions that can and must be taken. They urged Bush to call on the FTC to use its authority to hold the big oil companies accountable for their actions against American consumers.
But as reported yesterday in CSP Daily News, an FTC spokesperson responding to a similar call from Senator Charles Schumer (D-N.Y.), told CNNMoney.com that two previous FTC investigations into unfair business practices by the oil industry conducted in 2000 and 2001 turned up no evidence of wrongdoing.
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